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Content archived on 2024-05-14

Full employment in Europe

Objective



Proposal Summary
1. The main objective of the Thematic Network (TN) Full Employment for Europe is to re-introduce and substantiate the conoept of full employment as economic policy goal and guide-line for the working and refom of national and European institutions in a way which takes full account of the changes which have taken place especially since the 1970s.
2. The main thesis of the TN is, that the removal of full employment orientation from the economic policy agenda and from the principles governing relevant economic institutions is itself one decisive cause for the persistent rise in unemployment. In order to stop and reverse this trend the policy of deregulation and of exemption of economic institutions - including central banks - from public discussion and political control should therefore be corrected. The thesis is sharply opposed to the concepts of a "natural" rate of unemployment and "Non Accelerating Inflation Rate of Unemployment (NAIRU)", prevailing in neoliberal economic theory and policy.
3. The work of the TN will be in three fields
a. the analysis of the theoretical arguments and political reaons why full employment has been widely abandoned as explicit economic policy goal during the last two decades. Major emphasis will be laid on the failure to find appropriate policy and intitutional responses to economic, technological and social developments (like micro-electronics, globalisation and individualisation). Instead of being adapted to new and more complex conditions the post-war policy consensus in favour of full employment was stepwise revoked. Domestic and international co-operation was replaced by deregulation, the complex system of policy objectives governing the institutional arrangements was subordinated to and even subverted by the exclusive principle of monetary stability and international competitiveness.
This reductionist approach to a more complicated set of economic conditions could and did not work. Instead, the implementation of the neo-liberal paradigm itself contributed to the rise of unemploynent and social exclusion.
b. the elaboration of the necess ry modifications and differentiations, which must be made in a full employment strategy in contemporary Europe as compared to the two decades after World War II. Changes of technology, work organisation, corporate structures and strategies, globalisation and international interdependence, social differentiations in lifestyles and consumption patterns play a vital role. Full employment strategies and their institutional implementation must be more complex than before: Apart from the stimulation of economic growth via fiscal and monetary policy, they must increasingly take into account structural and ecological aspects, the creation of new jobs in public and private services, reduction and new organisation of working time. Also globalisation and the liberalisation of capital movements require a new approach to international cooperation in order to establish a positive-sum game of international consensus for full employment.
c. the concretisation of the instrumental and institutional side of an appropriate full employment strategy on the European level: reinforcement of existing tools (like the structural funds); reform and re-orientation of economic institutions; design and implementation of new initiatives for employment programmes and financial instruments: initiating, coordinating and monitoring the re-direction of national policy patterns toward full employment; promotion of part-time and other working-time reduction schemes; European support for local and regional employment strategies etc.
4. The partners of the TN are economists working on employment problems in their professional capacities in universities and research institutions. They have already organized two conferences in which about 30 economists from 12 European countries participated in 1995 and 1996. By further intensifying their discussions, elaboration and publication of concrete proposals for policy and institutional reform the TN intends to contribute to a larger debate about viable strategies leading out of the present situation of mass unemployment and social exclusion in Europe.

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THN - Thematic network contracts

Coordinator

UNIVERSITAET BREMEN
EU contribution
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Address
1A,Wilhelm-Herb-Strasse 1A
28359 BREMEN
Germany

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Participants (14)

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